The tax paid by trading companies registered in Malta is at the rate of 35%. However, since Malta operates the full imputation system of taxation, the tax paid by the Malta trading company is allowed as a credit to the shareholders(non resident in Malta Shareholders of the trading company in Malta) when distributions are made to them. Shareholding of the Malta trading company may be held by individuals or through a Maltese Company (holding company) that acts as a dividend feeder company. On the distribution of a dividend from the Maltese trading company, the shareholders may claim a tax refund of six sevenths (6/7) of the tax paid by the trading company.

The implication and effects on current business in setting up a trading company are minimal. Effectively the only amendments required are:

Change of Trading name (If a different company name is chosen) to that of the Maltese Company.

Change of head office address to the Maltese registered office on all Company correspondence.

Setting up of a Business bank account in Malta.

The content on this website is for information purposes only and should not be taken as tax, legal or any other professional advice.

Contact us for more information as well as for a quote. We will happily guide you through the Malta company formation process and also advise you on the solutions that would best suite your needs!